Five year commitment
Lidl makes £15 billion pledge to British food industry
Home pledge: Lidl will buy British
Supermarket chain Lidl is to invest a record £15 billion in British suppliers over the next five years.
The investment comes as the discounter’s pace of growth continues and follows its commitment to source 100% of its listed fresh poultry from UK farms. Lidl has also pledged to increase sales of British sourced fresh meat, poultry and fresh produce by more than 10% over the next 12 months.
Additional initiatives from the supermarket in support of its suppliers include:
– Longer-term contracts that will help give suppliers certainty and allow them to invest for the future helping them to create new jobs and develop their business.
– A young farmers programme designed to support new talent in the farming industry.
Ryan McDonnell, chief commercial officer at Lidl GB, said: “As our business continues to grow, it’s vital that our suppliers remain at the heart of our growth plans.
“Our business is only ever as good as our suppliers’, so our investments and commitments are key to ensuring that they can invest and expand with us.
“Our long-term partnerships with farmers are all the more important during economic uncertainty, and with 2019 marking our 25th anniversary, we are more committed than ever to supporting our suppliers here in Britain.”
New distribution centre
Lidl will open 50-60 stores this year and the company last week said it could create up to 250 additional jobs at its new 58,500 sq m distribution centre at Eurocentral, Lanarkshire.
New data shows the company enjoyed total sales growth of 8.2% during the 12-week period to 6 October, increasing its year-on-year market share from 5.6% to 6%.
Lidl and fellow German discounter Aldi now account for a combined 14% of UK grocery sales, which is 0.8% higher than last year.
Kantar World Panel data said Aldi experienced the biggest year-on-year growth in market share, up five percentage points from 7.6% to 8.1% on the back of total sales growth of 7.3% during the past 12 weeks.
Sainsbury’s outperformed its Big 4 competitors, recording a 0.6% increase in sales. It was the only Big 4 retailer to see a sales gain in the period. Its market share slipped from 15.4% a year ago to 15.3%.
Industry leader Tesco saw a 0.2% sales decline, giving it a 27% market share (27.3%).
Asda’s market share fell from 15.3% to 15% on a 0.9% slip in sales. Morrisons sales fell 1.8%, resulting in is market share sliding from 10.3% to 9.9%.
The Co-op grew at its fastest growth in sales since April at 3.9%, allowing it to claw back some market share year-on-year, growing from 6.4% to 6.6%.
Online grocer Ocado continued to consolidate its position as the UK’s fastest-growing supermarket as its growth of 13.3%, saw its market share rise from 1.2% to 1.4%.
Iceland’s sales grew 0.5% in the past 12 weeks but its market share was flat at 2.1%, while Waitrose declined by 1.1% and its market share slipped from 5.2% to 5.1%.